XRP News Today: XRP Network Activity Drops 94.05% Amid Price Stagnation

XRP, the cryptocurrency associated with the Ripple network, has experienced a significant decline in network activity, with the number of new daily accounts created dropping by 94.05% from its peak in December 2023 to May 2024. This dramatic decrease, from 30,641 new accounts on December 2 to just 1,822 on May 25, indicates a substantial slowdown in user engagement and interest within the XRP ecosystem.

The peak in new account creation coincided with XRP breaking out of a prolonged consolidation phase below $1, driven by a post-election rally and renewed investor interest. This surge in activity suggested a period of optimism, likely fueled by anticipation of favorable regulatory developments for the cryptocurrency sector. However, despite recent positive legal developments, such as progress in the ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple, and growing speculation about the potential approval of a spot XRP ETF in 2025, the pace of new account creation has remained subdued.

The stagnating price action and declining network activity raise concerns about the sustainability of XRP's current price levels. As of the latest data, XRP was trading at $2.28, down 2.87% over the past 24 hours and more than 6% on the weekly chart. This price movement suggests that XRP may be entering a consolidation phase or even facing a potential correction. The technical indicators, such as the 50-day simple moving average (SMA) at $2.24 and the 200-day SMA at $1.91, indicate a longer-term bullish trend. However, the recent price movement hovering near the short-term average may signal consolidation rather than a sustained upward trajectory.

Pseudonymous analyst RishHad noted that XRP has shown signs of renewed strength, potentially signaling a breakout above the $3 level. The current consolidation pattern appears constructive, with a bullish setup suggesting a possible move toward the $3.20 to $3.60 range. However, a key level to monitor is $1.91, a horizontal support that has historically held firm. A breakdown below this point could invalidate the bullish structure and signal a potential return to bearish conditions.

The decline in network activity and the stagnating price action highlight the challenges faced by XRP in maintaining its momentum. Despite positive developments in the legal front and growing anticipation of regulatory approvals, the cryptocurrency has struggled to reclaim the $3 mark. This situation underscores the need for sustained investor interest and regulatory clarity to drive further growth in the XRP ecosystem.